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STB denial a snag in development of new local trailway
The Commerce, Walled Lake, and Wixom Trailway Management Council is facing a slight hitch in its renewed effort to acquire and develop a railway corridor to as a trailway for lakes area communities.
The U.S. Surface Transportation Board (STB) recently denied Michigan Air-Line Railway’s petition for an abandonment exemption.
The Michigan Air-Line Railway property spans from West Bloomfield Township to the western city limits of Wixom and is considered the missing link in a non-motorized trail that traverses the county and connects to a cross-state corridor spanning the Lower Peninsula.
The 5.45-mile rail line is still in use by American Plastic Toys, a business located in Walled Lake. The company is the lone shipper on the line.
STB board members denied Michigan Air-Line Railway’s petition because it didn’t “provide the Board with sufficient evidence regarding the revenues and costs associated with the line, thereby making it impossible to determine what burden, if any, (Michigan Air-Line) Railway incurs in continuing to operate the line.”
According to the STB, railway common carriers are required by law to get authority from the STB to abandon railroad lines, which can be a long, involved process. However, exemptions from the full abandonment process can be granted, which is what Michigan Air-Line Railway was hoping to get approved.
In order to be granted the exemption, the STB reviews the entire cost to operate the line and the revenues generated. If the line is shown to be unprofitable and looks as if it will continue to be unprofitable, then the STB usually allows for abandonment.
However, in its decision, the STB argued that it didn’t have enough information provided by Michigan Air-Line Railway to determine if the line met the financial requirements to receive an exemption.
The STB also stated in its decision that the unclear relationship between Michigan Air-Line Railway and Rail Freight Solutions also needs clarification before granting the abandonment exemption.
While Michigan Air-Line Railway owns the railroad, Rail Freight Solutions actually operates the locomotive — not an entirely unusual arrangement.
However, Rail Freight Solutions needs to get the STB’s authority to operate the line — which, according to the STB decision, never happened. Therefore, Rail Freight Solutions never really had the authority to operate the line.
The STB gave the two parties until Tuesday, June 7 to submit a contract between them and any other documentation showing their relationship.
Nevertheless, Michigan Air-Line Railway still hopes to get the STB’s approval to abandon the railroad, therefore allowing the trail project to move forward.
“We are at liberty to refile a new petition for exemption, and we plan to do that so we can address the issues as indicated,” said Robert Alderson, an attorney for Michigan Air-Line Railway.
He added that the company still wants to abandon the rail line.
“We still want to because we lose money serving the only shipper on the line (American Plastic Toys), so the better use of the line is to abandon it and convey the right-of-way to the local units of government who can get funding from various state agencies to fund the redevelopment and use of the trail. It’s a better use of the line,” he said.
Meanwhile, the Trailway Management Council plans to go ahead with preparing its grant application for funding from the Michigan Natural Resources Trust Fund (NRTF).
“We’re still moving forward with the grant applications,” said Commerce Township Planner Kathleen Jackson. “The NRTF board doesn’t make the grant decision until December, and (Michigan Air-Line Railway) hopes to have an answer by then.”
7 Responses to STB denial a snag in development of new local trailway
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Coe Railroad Sux
June 1, 2011 at 8:01 pm
Everyone should contact Thaddeus McCotter, Stabenow and Levin to move this puppy out of there. APS has transportation arranged and this railroad is an eyesore and a hazard. TIME TO GO!
Resident
June 2, 2011 at 8:01 am
State and local finances are a WRECK, but somehow the municipalities always find a way to fund such non-essential and hardly necessary JUNK pet projects. Yet another prime example of this countries and our politicans misguided priorities.
Chris Detroit
June 3, 2011 at 12:38 pm
Resident,
This project is not being paid for by municipal funds. It is being paid for by Federal and State grant money. That money can only be used for parks and recreation, so funds are not being taken from anything else, such as police, fire, education, etc.
Second, Commerce Township dropped the ball on this. They missed the first deadline for applying for grant money. They finally got the application in for the second deadline but they failed to appear the hearing, and American Plastic Toys objected to the plan. Otherwise it would have been done by now.
resident
June 3, 2011 at 9:01 pm
Hey Chris………. WTF do you think “Federal and State Grant Money” come from …. The federal and state money fairy ???? It’s all pyramid / ponzi pyramid of tax dollars that both the feds and state tax in (as in the tax dollars that YOU have paid also) and are then dolled out for such wasteful and un necessary spending.
Then again………… With both the Federal, state and local deficits running at ever growing record numbers and at an ever growing record pace, these are all “Muni-Loans” from the fine folks in China that “Joe Tax Payer” ends up paying BACK to China, WITH INTEREST.
Until this country can afford such garbage, such junk borrowing and spending needs to stop.
Chris Detroit
June 6, 2011 at 10:27 am
Resident,
I’m sorry if you are offended by this. You seem very angry and upset. I only meant to clarify that the funds being used to acquire the land are grant money that can only be used for parks and recreation, and they are not coming out of the township’s general operating budget, etc.
The money is there for the taking, and if the township chooses not to take the money it will go to some other parks/recreation project.
it sounds like you have a personal problem with the Federal and State Govt. budgets, how tax dollars are used, etc. I understand your frustration but this article only deals with a specific project and where the money is coming from.
If you want to change how your government spends money, you should take action and get involved, As it stands now there is money set aside for parks and rec, like it or not, and if the township doesn’t apply for the grant money it will lose it. I am not taking a position on whether money should be set aside for parks/rec in the first place. Also, such money is very small in the grand scheme of things, it is one of the smallest components of the budget. Yet there are numerous studies that demonstrate parks and recreation such as state forests generate revenue and create and/or maintain jobs. Its a very positive return on investment. It also helps create a sense of community and increases property values which is good for everyone.
From DNR:
“Each year, hunting, fishing, wildlife activities, boating, hiking, cycling and similar endeavours generate an economic impact of $9 billion dollars.
State forests support a forest products industry and recreational industry which generate $14 billion and support 136,000 jobs.”
flatbed willy
June 6, 2011 at 3:00 pm
I like the statement that approval is needed to abandon the line. If not approved, does that mean the railway *has* to be used? …what if the railroads…ummmm…. simply ‘forget’ to use it for several years?
That reminds me, I forgot to get permission to abandon my bike 20 years ago.
Leonard Wayne Dobbert
November 23, 2011 at 10:46 pm
I used to work for Coe rail, as an switchman, Track repair, As a railroad journeyman carman, and Locomotive Engineer. And General Manager. back in the 80′s, Coe rail had two lumber mills, a new chemical company that a new siding was put in, and American plastics. We had weekend rides, and party trains. That track at one time was in excellent condition. “I’, not Mr Coe made sure of it. we kept the track free of grass and weeds and we cut brush, and replaced all bad ties on the line. I ran the best engine I ever ran in my life. An Alco S-1 diesel #52. I maintained that engine myself from drawbar to drawbar. Washed and cleaned spotless. I inspected every switch, and kept them all cleaned and oil..I knew every trick about switching American plastics. And they would go under without those hopper cars being delivered, and switched out. I cannot beleave Coe Rail let this happen to this line. It made me sick when I found out.Michigan Airline Railroad let this operation fall apart. The Last time I seen # 52, it was almost ruined, and the tracks looked like nobody touched them for years. Real sad.